I was profoundly inspired by the Pulitzer Winner Book “The Price:The Epic Conquest for Oil, Money and Power” by Daniel Yergin which spoke about :
In the Fortune 500 ranking published in 2008, six oil organisations were included which demonstrates the role of oil in modern capitalism,politics and worldwide influence.
Oil since the beginning of time has been a commodity influencing all parts of the world and has prompted the fall and ascent of countries,governments and societies.It likewise determined the outcome of the two world wars which changed the global economic scenario as well as smaller wars such as the Cold War and the conflict in the Middle East.
Oil in this day and age holds nearly the same measure of criticalness as cash.
Origin & nature
“Seven Sisters” was the term used for the seven multinational oil companies which commanded the global oil scenario from the mid 1940s to the mid 1970s. The business assemble comprised of Anglo Iranian Oil company, Gulf Oil, Royal Dutch Shell, Standard Oil Company of California, Standard Oil company of New Jersey, Texaco and controlled around 85% of the world’s petroleum reserves.
In 1922 December Shell – La Rose field blew out with an uncontrolled flow estimated at one hundred thousand barrels per day. Development preceded in 1921 Venezuela produced 1.4 million barrels. By 1929 it was 137 million barrels making it second after the US in production. It became the largest single earning for the Royal Dutch/Shell and it became Britain largest supplier. The uncertainties of the President Gomez’s government and for safety refinery were set in Dutch island off the coast by Shell. Even by Lago(U.S. company Pan America later purchased by Standard). Then with the fall of the Gomez regime in 1943 the Petroleum law was introduced, Prez Alfonzo wanted Venezuela to reap the profit of transportation, refining and marketing. The tax law ensured fifty-fifty division between the Oil Company and government. 1948 the democratic government was thrown into jail on the rise of coup. Prez Alfonzo was allowed to leave the country and in 1958 dictatorship toppled and he returned to take up the post of the Minister of Mines and Hydrocarbons. He wanted to create a system run by government not the oil company which was turn down by America so he seek out towards the east – Cairo (at the Arab oil conference) where he was introduced to Abdullah Tariki the head of the Directorate of Oil and Mining Affair in Saudi Arabia a supporter of Nasser (Egypt) by Wanda Joblonski oil journalist. A secret meet held in Maadi along with Kuwaiti; the Iranian Prez Alfonzo put his idea forward of forming a Oil consultative commission to defend the price structure to protect government revenues a front against the Oil companies- that later developed in to the Organization of Petroleum exporting Countries(OPEC in 1960).
OPEC trusts itself to be a force for market stabilisation and not a anti-competitive cartel as it was formed to balance the dominants of the oil market ” the Seven Sisters”. It’s primary objectives have always been to ensure market stability and safeguarding the revenue of it’s member countries. Despite OPEC being a driving force the non-OPEC countries have had a substantial share in the world market. It has not had any conflicts with the WTO related to competition acts as protected by the organisation’s sovereign immunity.